PININFARINA S.P.A. The key financial figures of the Pininfarina Group as at and the first nine months of 2015 and 2014 are as follows:
(€'million) | 30 September 2015 | 30 September 2014 | 31/12/2014 | Variation * |
Value of production | 60.7 | 64.6 | -3.9 | |
EBITDA | -0.3 | 5.5 | -5.8 | |
EBIT | -3.6 | 3.0 | -6.6 | |
Loss for the period | -7.8 | -0.7 | -7.1 | |
Net financial debt | -42.5 | -47.7 | -44.8 | 2.3 |
Equity | 20.3 | 28.8 | 27.9 | -7.6 |
* Variations in the statement of financial position figures relate to the corresponding figures at 31 December 2014.
EBITDA is the operating profit or loss gross of amortisation, depreciation, provisions, impairment losses, reversals of impairment losses and utilisation of provisions. EBIT is the operating profit or loss.
Pursuant to article 154-bis.2 of the Consolidated finance act, the manager in charge of financial reporting, Gianfranco Albertini, states that the financial disclosures provided in this press release are consistent with the relevant documentation, ledgers and accounting records.
The most significant issues that arise from a comparison of the consolidated figures for the first nine months of 2015 and 2014 are summarised below:
the value of production has decreased by 6% due to the smaller contribution of the design and engineering services segment;
EBITDA and EBIT are both negative, unlike the corresponding period of the previous year, mainly due to the 2014 sale of particularly significant intellectual property rights and the restructuring provision of €0.9 million recognised at 30 September 2015;
compared to the first nine months of 2014, the Group's Italian automotive operations recognised a loss, the German subsidiaries' profit margins have improved, while the contribution of the Chinese operations and industrial design activities has decreased;
the net financial expense has worsened due to the significant contraction in financial income during the reporting period, following the partial liquidation of assets under management at the end of 2014;
equity has decreased compared to 31 December 2014, due to the loss for the first nine months of 2015, whereas the net financial debt has improved following the repayment by the tax authorities of advances previously paid by the parent for the registration tax litigation, the repayments of the loans granted to the ultimate parent, Pincar S.r.l., and the recovery of VAT assets.
In addition to the sale of spare parts for cars manufactured in previous years and business lease income, this segment includes the costs of the support and property management functions of the parent, Pininfarina S.p.A.. Value of production amounted to €4.9 million, in line with the first nine months of 2014 (€5 million).
Segment EBIT worsened by €2.2 million, or 33.8%, to a negative €8.7 million from a negative €6.5 million in the corresponding period of the previous year. The main reasons behind this higher loss are the inexistence of the positive effect of the gains on the sale of assets recognised in 2014 (€0.7 million) and the incurrence of higher costs for the ongoing restructuring and litigation.
This segment, comprising the design and engineering businesses, recognised value of production of €55.8 million, down 6.5% compared to the first nine months of 2014 (€59.7 million).
Segment EBIT amounted to a positive €5 million compared to €9.5 million for the nine months ended 30 September 2014. The decrease in profitability is mostly due to the 2014 sales of intellectual property rights, which were not repeated in the reporting period and were very profitable.
The key financial figures of the parent, Pininfarina S.p.A., are summarised below:
(€'million) | 30 September 2015 | 30 September 2014 | 31/12/2014 | Variation * |
Value of production | 33.3 | 39.8 | -6.5 | |
EBITDA | -2.9 | 3.1 | -6.0 | |
EBIT | -5.6 | 1.2 | -6.8 | |
Loss for the period | -8.4 | -1.1 | -7.3 | |
Net financial debt | -47.4 | -49.8 | -50.1 | 2.7 |
Equity | 20.6 | 31.0 | 28.9 | -8.3 |
* Variations in the statement of financial position figures relate to the corresponding figures at 31 December 2014.
EBITDA is the operating profit or loss gross of amortisation, depreciation, provisions, impairment losses, reversals of impairment losses and utilisation of provisions. EBIT is the operating profit or loss.
The tables showing the net financial debt of the Pininfarina Group and Pininfarina S.p.A., with separate classification of current and non-current items, are attached hereto.
The Group has no past-due liabilities (of a commercial, financial, tax or social security nature). No actions against the Group have been filed by creditors.
The tables showing the Group's and parent's related party transactions are attached hereto.
Compliance with the financial covenants in force for the current reporting year will be checked when the annual consolidated financial statements at 31 December 2015 are approved. According to the outlook for 2015, the Group will not reach the 2015 EBITDA level required by the existing Rescheduling Agreement, while the covenant on the net financial position at 31 December 2015 will be met.
The parent's debt restructuring plan is proceeding in accordance with the current agreements.
Reference should be made to that disclosed in the 'Going concern and outlook for 2015' section as regards the business plan's implementation.
On 1 October 2015, Pininfarina S.p.A. launched a redundancy programme involving 14 employees. According to the law in force up to 31 December 2015, some of them may retire, while the others have professional skills that, due to the change in the organisational structure, may no longer be reallocated within the Group or are redundant in relation to the current and future size of its business.
The parent is doing its best to assist these people bearing the related outplacement costs and considering, as far as possible, reductions in working hours in order to minimise the impact of the programme.
There are no other significant events that occurred after the reporting date.
Going concern
Like in the first half of 2015, the figures for the period confirm that noted by the directors in the 2014 annual report, namely, that despite being consistent with the budget, the Group's growth, financial indicators and cash flows from operations are not in line with the 2011-2018 business plan's forecasts.
Negotiations between the ultimate parent, Pincar S.r.l., the lending institutions and the Indian Mahindra Group (for the acquisition of the Pininfarina S.p.A. shares held by Pincar S.r.l. and the concurrent restructuring of Pininfarina's debt) are still in place and a positive outcome is expected to be reached in the next few weeks.
Therefore, in September 2015, the parent presented a draft business and financial plan drawn up jointly with Mahindra to the lending institutions. The new plan would ensure the financial stability and recapitalisation of the parent and the Group for the foreseeable future.
Moreover, the Board of Directors acknowledged the proposed guidelines outlined in a new standalone business and financial plan prepared by management, which are more consistent with the Group's current ability to produce the cash flows necessary to repay its outstanding debt and ensure the necessary capitalisation. This document may underpin possible future negotiations with the lending institutions, should the agreement with Mahindra not be reached.
Considering all that discussed above and evaluating medium-term uncertainties, the Board of Directors presently continues to reasonably expect that the Group and the parent are nonetheless able to continue as going concerns in the foreseeable future and prepared the condensed interim consolidated financial statements at 30 September 2015 on a going concern basis.
Outlook
Consolidated value of production for 2015 is expected to decrease by 5% compared to 2014 (the previous forecast was that it would have been in line with the 2014 figure) and the EBIT is forecast to be negative.
Net financial debt at the end of 2015 is expected to worsen compared to 31 December 2014, due principally to net working capital trends and the accumulated unrealised losses resulting from the measurement of financial liabilities at amortised cost.
Gianfranco Albertini, CFO and Investor Relators, tel. +39.011.9438367
Francesco Fiordelisi, Corporate and Product Communication Manager, tel. +39.011.9438105/335.7262530
Studio Mailander:Carolina Mailander, tel. +39.011.5527311/335.6555651
The reclassified interim financial statements group the figures presented in the legally-required statements to improve their understanding, without however changing their presentation logic.
The terms 'EBITDA' and 'EBIT' as used in the reclassified interim financial statements are the 'operating profit or loss, gross of amortisation, depreciation, provisions, impairment losses, reversals of impairment losses and utilisation of provisions', and 'operating profit or loss' presented in the IFRS financial statements, respectively.
|
distributed by
|
